Sri Lanka prime minister says economy has collapsed

The country has endured months of food, fuel, and electricity shortages, relying on international loans and aid. The country is unable to buy fuel since its major Petroleum provider, Ceylon Petroleum Corporation, is $700 million in debt. This crisis is considered the worst in recent memory, but Prime Minister Ranil Wickremesinghe did not cite any new developments in his announcement Tuesday that the economy had collapsed. His declaration served as notice to his critics that the situation will take a long time to remedy. 

What does the path forward look like? India has largely kept Sri Lanka afloat through $4 billion in credit lines. The World Bank has pledged $300 million to $600 million for medicine and essential items. Meanwhile, Sri Lanka has suspended repayments of $7 billion of debt due this year. International Monetary Fund representatives are visiting Sri Lanka now to discuss a rescue package for the country.

Dig deeper: Read Onize Ohikere’s report in World Tour discussing Sri Lanka’s attempts to escape its economic struggles.